If your business is somehow involved with serving alcohol, you must know what’s going on in this industry. This article collects the most relevant spirits industry trends you must know. You can use them to boost your sales and improve your customer experience.
You won’t need to integrate all these trends into your business. However, it is good to know what is going on and pick the ones that matter the most for your venue.
Let’s dive in.
Wine and Spirits Industry Trends You Can Ride To Grow Your Business
Whether you’re opening a bar, a winery, or a spirits retail store, being aware of the spirits industry trends can give you an edge. In other words, you’ll stay ahead of the curve. While this industry is moving fast, not all trends are relevant. Therefore, this condensed selection of trends will be helpful not to waste your time. Moreover, pay attention to how these trends blend with trends in close industries.
You’ll find the sources for the trends and statistics at the end of the article. Let’s dive in.
Wine and Spirits Industry Trend #1: Embracing Health Consciousness
Let’s start this spirits industry trends collection with something you might have already
noticed. Everyone wants to be healthy. Even when drinking alcohol.
The notion of being healthy is growing in every industry. Especially after the effects of Covid-19, more and more people are prioritizing making healthier choices.
Younger generations are leading the trend. However, the same considerations apply to older segments of the population. In the last few years, there has been an evident surge in the demand for healthier choices. This trend is also evident in the alcoholic beverage sector.
The growing demand for low and no-alcohol (NoLo) beverages is a clear manifestation of the trend. Sales for these healthy options grew by an impressive 33% in 2022. It demonstrates that the market is shifting toward these products. Moreover, it is worth pointing out that the curve is not going to flatten here. Predictions indicate that the NoLo market might expand annually by about 17%. That is a lot, and you don’t want to ignore this data. As a business owner, understanding and capitalizing on this demand will help you provide a comprehensive service. Integrating NoLo drinks in your selections of beverages, or expanding the available spirits category, is key. However, ensure that this choice does not clash with your brand positioning.
Wine and Spirits Industry Trend #2: Sustainable and Complex Flavors
An emerging spirits industry trend is the increasing consumer demand for sophisticated flavors paired with sustainable production practices. This is another trend driven by younger demographics and visible in other industries. This trend encourages the growth of craft distilleries, who position themselves to serve this segment of customers. This might be the perfect moment to start a brewery that follows this specific trend in the alcohol beverage industry.
Craft distilleries must focus on quality and environmental impact, aligning their offerings with this trend. They can produce spirits with complex flavor profiles that go beyond the ordinary. However, the production process must align with sustainable and environmentally friendly practices.
There are multiple ways to ride this trend and its opportunities in the spirit market. You can attract a broader customer base by offering products that align with consumers’ ethical considerations. Moreover, it will help you differentiate in a crowded marketplace. However, ensure that every part of your business is coherent with the trend.
Wine and Spirits Industry Trend #3: Classic Spirit Renaissance
Even as the health consciousness wave grows through the industry, another interesting spirits industry trend is taking shape. The claim for classic spirits.
During lockdown, many consumers found joy in interacting with their close ones. And what helped them forget about the sorrows of Covid more than alcohol?
This wine and spirits industry trend shows a duality. On one side, people want healthier choices. On the other, they crave authentic experiences.
This trend also relates to the increasing number of consumers learning about drink mixology. More people wonder whether bartending is a good job. So, the demand for learning about the basics of the craft is also driving more demand toward authentic flavors.
For business owners in this industry, this is a low hanging fruit. You might reinforce your positioning by simply stating it. This trend offers a great opportunity to refine your offer and extend it. By aligning your offerings with this growing consumer interest, you can ensure your business remains relevant and attractive. It is also important to mention how this Renaissance is an example of cyclicality. Even in times of change, there’s always room for authentic experiences. To boost the sales of spirits with this trend you want to strike the right balance between innovation and tradition.
Wine and Spirits Industry Trend #4: Ready To Drink Beverages
Another sizeable spirits industry trend is the growing popularity of ready to drink beverages. Convenience has become a key factor in consumer buying behavior. People want comfort and easy choices. The rising popularity of ready to drink (RTD) options in the spirits industry is evidence of it. As people want to save time, RTD beverages offer the perfect solution for consumers.
For example, searches for canned cocktails have skyrocketed, with a whopping 200% increase within a year. This demonstrates a strong market interest that business owners should consider. Moreover, this trend will keep growing in the future. RTDs might capture 20% of the total alcohol market by 2025. So, what are you waiting for?
You can incorporate RTD in your offer and make the choice easy for your customer. Ensure, though, to provide qualitative beverages and popular types of drinks. The customer profile of those who consume RTD is not that of an expert. Thus, pick popular alcohol brands and drinks like Mojito or Spritz.
You can easily capitalize on this trend by incorporating RTD offerings that maintain a high standard of flavor and quality.
Wine and Spirits Industry Trend #5: Whisky’s Rising Star
As the consumer palate becomes sophisticated, there’s a remarkable trend toward premium drinks. One particular spirit that’s enjoying the limelight is whisky. Whisky’s popularity is growing in traditional markets and places like Asia. Who would have ever said that?
This spirits industry trend isn’t just about offering more expensive products. It’s about delivering superior quality and richer experiences. While this trend offers a great opportunity for higher profits, it is not approachable by anyone. You must have a thorough understanding of premium beverages. Even just to decide how to price a liquor or a spirit. So, ensure you have the right skill set to capitalize on it.
Nonetheless, the opportunities are many. Whether it’s by introducing a premium line of spirits or hosting events to attract customers, you can ride this trend. The crucial aspect to keep in mind is always the same. It’s not just about the drink. It’s about the experience.
Wine and Spirits Industry Trend #6: The Craft Distillery Boom
This list of spirits industry trends continues by talking about the growth of craft distilleries. As mentioned before, there are other trends that favor this type of business. Craft distilleries succeed by offering qualitative, sustainable, and uniquely branded products.
Moreover, consumers gravitate towards brands with authentic stories, an aspect that craft distilleries are capitalizing on effectively. Their focus on smaller production quantities allows for greater innovation, more personal relationships, and an emphasis on sustainability. In other words, a recipe for success.
What to do, then? If you own such a type of distillery, ensure to emphasize it within your marketing strategy. Highlight your production methods that result in unique products. Otherwise, if you source your product from a craft distillery, promote your offering in any possible way.
Wine and Spirits Industry Trend #7: The Rise of Ecommerce in Spirits
The last notable spirits industry trend is the rise of ecommerce. This should not come as a surprise. The digital transformation of the last 20 years has left no industry untouched. However, this trend has been growing since the pandemic and is consolidating. Projections indicate a potential threefold increase in online revenue for the U.S. spirits industry from 2020 to 2025.
However, many businesses struggle to capitalize on it because they focus solely on the product. To succeed, instead, business owners must focus on providing a seamless, convenient, and enjoyable shopping experience, just like any ecommerce. Every aspect of the online shopping journey matters, from intuitive website design to fast delivery. Therefore, if you want to embark on this venture, ensure you have the right knowledge and appropriate distribution channels.
Relevant Spirits Industry Statistics in 2023
All the trends mentioned so far come from multiple studies showing the spirits industry’s vitality. Understanding the current state of the spirits industry is instrumental in implementing effective business strategies. Therefore, along with spirits industry trends, it is worth talking about data and numbers.
The following spirits industry statistics give you a holistic view of the market and its direction.
- The Spirits market will reach $525.30bn in revenue in 2023.
- The market will grow by 4.56% annually from 2023-2027.
- China will generate the highest revenue in the Spirits market, totaling $165,900.00m in 2023.
- By 2027, 27% of spending and 8% of volume consumption in the Spirits market will come from out of home consumption.
There are a few considerations worth doing here.
- The dominant revenue generation by China necessitates a strong business presence or partnership in this region. If you have the chance to invest in local operations or collaborations, you might drive considerable business growth.
- Regardless of your location, however, consider diversification. A varied product portfolio can cater to a wider range of consumer preferences and demands. This will ensure a robust market presence. Do not sacrifice quality, though.
- The rise in out of home consumption should be a significant focus for businesses. Creating strategic partnerships with hospitality services or offering exclusive products for these segments could enhance market penetration.
- Lastly, your online reputation and presence matter more than ever. Ensure to clarify what your business offers and how it aligns with one or more spirits industry trends. In a crowded industry, differentiation is key.
Marketing Tips for Business Owners in the Spirit Industry
To conclude this article on the most prevalent spirits industry trends, here are a few tips and tricks to succeed with digital marketing. Applying this knowledge to develop effective marketing strategies will give your business an edge.
- Boost Your Online Presence. Your online presence is what will attract most customers. Create and maintain active profiles on relevant social media platforms, post regularly, and engage with your followers. Also, ensure to use these platforms to showcase your uniqueness and create a dialogue with your audience.
- Branding. Develop a consistent brand identity that reflects your business’s values and story.
- Develop an Engaging Website. Your website serves as a digital storefront. Even if you don’t sell online, it creates an impression of what your business is about. Make sure it’s easy to navigate, provides useful information, and tells the story of your business.
- Engage in SEO. Optimize your website and content for search engines to increase your online visibility. Ensure that your business appears on Google Maps.
- Cultivate Customer Relationships. Loyal customers are invaluable. Engage with them regularly and listen to their feedback. Happy customers will refer you to other customers. This is how your online reputation on local review sites grows.
- Measure. Marketing is an ongoing activity. Regularly review your marketing endeavors and learn from any failures or successes.
Is It Enough To Follow the Trends in the Spirit Industry?
Now that you know the most relevant trends in the spirit industry, it’s time to use them. Pick the ones that align with your business’s traits and operations. You might attract new customers and retain old ones. However, do not jump on a wagon randomly. If you follow a spirit industry trend without really understanding it, you might just waste time and resources.
Moreover, keep your business relevant by following the marketing practices suggested above. If you also have a physical venue that welcomes customers, ensure to implement a WiFi marketing solution like Beambox.
With Beambox, you can gather customer data and learn more about their preferences and needs. Moreover, you’ll be able to manage your online reputation and automate marketing campaigns.
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